The bill amends Section 42-63.1-3 of the General Laws regarding the distribution of hotel tax proceeds in Rhode Island. It introduces a new title, "Distribution of tax," and specifies the distribution percentages based on hotel locations. Notably, the allocation to the Rhode Island Commerce Corporation is increased from 28% to 33% in certain districts and from 70% to 75% in the Statewide district. The bill also removes the previous requirement of allocating 5% of the hotel tax to the Greater Providence-Warwick Convention and Visitors Bureau, redistributing those funds to enhance the Commerce Corporation's share.

Additionally, starting July 1, 2025, the bill mandates that 5% of hotel taxes generated in the Aquidneck Island district and other statewide tourism districts will be allocated to the Rhode Island Commerce Corporation for tourism development, public art, and events in participating regions. The overall aim of these amendments is to streamline the distribution of hotel tax revenues while significantly boosting funding for tourism promotion through the Rhode Island Commerce Corporation. The act is set to take effect upon passage.